Contrarian investing

A contrarian investment strategy involves purchasing investments that are out of favor at the time of purchase. Contrarian investing is closely tied to value investing because both investment strategies attempt to buy assets when they are attractively priced, which often occurs when they are unpopular in the market. Contrarian investing is simply buying what the large majority of investors are either avoiding or selling, and selling or avoiding what most investors are buying. Contrarian investing probability models indicate that when corporate buybacks drop by over 15% YoY, markets underperform within three months. Current data shows a 17% decline, amplifying defensive allocation strategies.